Global brokerage group CBRE and its Seattle team of exclusive medical office real estate professionals has brokered a deal for the building that houses the Virginia Mason Medical Center in Lynnwood. Seattle-based property management group Clise Properties purchased the building from VM Lynnwood LLC, associated with investor Jeffrey Ing of Seattle for $13.65 million in a deal that closed April 6th.
Paul Carr, a member of CBRE’s medical office team said in terms of this recent sale, there’s very strong demand, so that generally would indicate a seller’s market. “There’s been a steady increase in activity, though buyers have been successful as well,” he said. “In Q1 2015, there were less than $100 million in the prior 12 sales months of medical office buildings sales,” Carr said. “In Q4 2016, there’s been close to $600 million in medical office transactions so there’s been steadily increasing volume in sales.”
According to public records, Clise acquired three parcels of land in the deal, located at 19116 33rd Avenue West. Ing acquired the property in February of 2005 from First Western Development Services, which owned the property since November of 2000.
The medical center sits just south of the Alderwood Mall and the Alderwood Towne Center. The location also offers easy access to multiple highways including I-5, I-405 and State Route 525. “We’re seeing more and more demand from medical office users in a retail or quasi retail setting so from that perspective, this building is really well located,” Carr said.
Clise owns a number of assets across the Puget Sound region, stretching from Bothell to Puyallup. Early last year, Clise presented plans for a Twin Tower Complex or Block V in the Denny Triangle neighborhood at 2301 Seventh Avenue, just down the street from Amazon’s campus. The mixed-use towers consist of 638 residential units across two 40-story towers over a 10-story podium. The podium provides five floors of Class A office space of 173,175 square feet as well as four floors of apartment units, ground floor retail of 10,700 square feet, and 750 parking stalls. Graphite Design Group served as the architect on the project.
The Virginia Mason Lynnwood Medical Center offers a number of primary care internal medicine services, according to its website. The facility caters to ambulatory surgery, laboratory facilities, radiology, infusion therapy, medical oncology, dermatology, medication therapy management, mammography and more. Patients can also receive care for nutrition services, orthopedics, prostate cancer, psychiatry and psychology, sleep disorders clinic, sports medicine, urology and other services. The medical center mostly has doctors in primary care and internal medicine, with a few specialized doctors in other fields.
Virginia Mason has nine facilities across the Puget Sound region in Bellevue, Federal Way, Issaquah, Kirkland, Lynnwood, the University District and on Bainbridge Island. Virginia Mason also has a hospital and medical center in Seattle as well as a separate administrative center also in Seattle.
CBRE’s team of brokers dedicated to the healthcare segment of commercial real estate, which includes Paul Carr and Steven Perovich, both senior vice presidents, Marcus Yamaoto, vice president, Dang Nguyen, first vice president and Christine Carr, client services coordinator, represented the seller, Ing, in the deal. Another CBRE broker, Mark Zoffel of the multifamily team, was also involved in the deal. Paul Carr said CBRE also represented the buyer, Clise Properties.